Season 2 · Episode 5
FMP Short Stuff - Debt Service Coverage Ratio (DSCR)
The Financial Modelling Podcast
May 20, 20195m 5s
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Show Notes
In this FMP Short Stuff episode, I discuss the DSCR. Why is the DSCR so important that banks make it a covenant? Best you do not breach this key ratio which dictates how easily you can service your debt in any given period from cash flow. The DSCR is a key metric for any deal and shows how capable a project is of paying its debt.